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Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories
Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. The company has two manufacturing departments--Molding and Fabrication it started, completed, and sold only two jobs during March-Job P and Job Q. The following additional information is available for the company as a whole and for Jobs P and Q (all data and questions relate to the month of March): Estimated total machine-hours used Estimated total fixed manufacturing overhead Estimated variable manufacturing overhead per machine-hour Molding Fabrication Total 2,5ee 1,500 4,080 $11,899 $15,600 $26,600 $ 1.80 $ 2.60 Job P $17,880 $24,200 Job $10,000 $ 9, 100 Direct materials Direct labor cost Actual machine-hours used: Molding Fabrication Total 2,100 1, eee 3,100 1,200 1,300 2,500 Sweeten Company had no underapplied or overapplied manufacturing overhead costs during the month Required: For questions 1-8, assume that Sweeten Company uses a plantwide predetermined overhead rate with machine hours as the allocation base. For questions 9-15, assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both departments 5. What was the total manufacturing cost assigned to Job Q? (Do not round intermediate calculations.) Total manufacturing cost
Expert Solution
Plantwide predetermined overhead rate => (Estimated Total fixed cost of both department +Estimated Variables cost of both department ) /Estimated Total machine hours
= ($26,600 + 2500 hours X $1.80 + 1500 hours X $2.60)/4000 hours
=$35,000/4000 hours =$8.75
Total cost of Job Q = Direct material + Direct Labor Cost + applied Overhead
=$10000 +$9100 + (2500 hours X $8.75)
=$40975.
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